Board of Directors Approves Special Cash Distribution of $0.50 Per Share

November 29, 2012 06:55 AM Eastern Standard Time

CHELMSFORD, Mass.--(BUSINESS WIRE)--Sycamore Networks, Inc. (NASDAQ: SCMR), today reported its results for
the first quarter ended October 27, 2012. Revenue for the first quarter
of fiscal 2013 was $12.1 million, compared with $15.4 million for the
first quarter of fiscal 2012.

Net loss for the first quarter of fiscal 2013, on a generally accepted
accounting principles (“GAAP”) basis, was $6.8 million, or $0.23 per
share, compared with a GAAP net loss of $1.6 million, or $0.06 per
share, for the first quarter of fiscal 2012.

Non-GAAP net loss for the first quarter of fiscal 2013 was $3.9 million,
or $0.14 per share, compared with a non-GAAP net loss of $0.9 million,
or $0.03 per share for the first quarter of fiscal 2012. The
reconciliation between net loss on a GAAP basis and net loss on a
non-GAAP basis is provided in the table immediately following the
Unaudited Condensed Consolidated Statements of Operations included with
this press release.

The Company also announced that, on November 27, 2012, its Board of
Directors approved a special cash distribution of $0.50 per share of its
common stock. The special cash distribution will be paid on December 20,
2012 to stockholders of record as of December 10, 2012. Given the amount
of the special cash distribution, the Company expects that the
ex-dividend date for the special cash distribution will be December 6,
2012, which is two business days prior to the record date for the
special cash distribution.

The Company also announced it will not be holding a conference call with
investors regarding its first quarter results.

About Sycamore NetworksSycamore Networks, Inc. (NASDAQ:
SCMR) develops and markets intelligent bandwidth management solutions
for fixed line and mobile network operators worldwide. Sycamore products
enable network operators to efficiently and cost-effectively provision
and manage network capacity to support a wide range of converged
services such as voice, video and data. Our global customer base
includes Tier 1 service providers, government agencies, and utility
companies. For more information, please visit www.sycamorenet.com.

Use of Non-GAAP Financial MeasuresThe Company provides
non-GAAP financial data in addition to providing financial results in
accordance with generally accepted accounting principles (GAAP). These
measures are not in accordance with or an alternative for GAAP, and may
be different from non-GAAP measures used by other companies. The Company
believes that the items excluded from the non-GAAP results have one or
more of the following characteristics: their magnitude and timing are
largely outside of the Company’s control; they are unrelated to the
ongoing operation of the business in the ordinary course; they are
unusual, and the Company does not expect them to occur in the ordinary
course of business; or they are non-operational, non-cash expenses
involving stock option grants.

The non-GAAP financial data is provided to enhance the reader’s overall
understanding of the Company’s current financial performance and its
prospects for the future. Specifically, the Company believes the
non-GAAP results provide useful information to both management and
investors by excluding certain expense and income items that the Company
believes are not indicative of the Company’s core operating results. In
addition, since the Company has historically reported non-GAAP results
to the investment community, the Company believes the inclusion of
non-GAAP numbers provides consistency in its financial reporting.
Further, these non-GAAP results are one of the primary indicators
management uses for planning and forecasting in future periods. The
non-GAAP financial data should be considered in addition to, not as a
substitute for or a more appropriate indicator of, operating results,
cash flows, or other measures of financial performance prepared in
accordance with GAAP.

Caution Regarding Forward-Looking Statements

We wish to caution you that certain matters discussed in this press
release may constitute “forward-looking statements,” as defined under
the federal securities laws. Risks and uncertainties relating to the
Company’s business could cause actual events and results to differ
materially from those stated or implied in such statements. Potential
risks and uncertainties include, among others, the impact of the
announcement of the sale of substantially all of the assets of our
Intelligent Bandwidth Management business (the “Asset Sale”) and the
dissolution of the Company on the trading price of our common stock and
our business and on our relationships with our customers, suppliers and
employees; our ability to successfully close the Asset Sale and the
timing of such closing; difficulties associated with identifying,
analyzing or consummating strategic alternatives with respect to our
IQstream® business and our other remaining non-cash assets; our
inability to predict the timing, amount or nature of any additional cash
distributions to stockholders; the Company’s reliance on a limited
number of customers; industry pricing pressures; the consolidation of
both suppliers and customers in the telecommunications marketplace; and
general economic conditions. More information about potential factors
that could affect the Company’s business and financial results is
included in the section entitled "Risk Factors" in the Company's reports
filed on Forms 10-Q and 10-K with the Securities and Exchange
Commission. The Company disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of new
information, future results or otherwise.